Location: Redwood County, MN | Metro: Redwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56287 reveals a unique balance between yield and stability that can inform investment strategies for landlords and small-portfolio investors.
On the yield axis, the Federal Market Rent (FMR) for the fiscal year 2026 stands at $1,030. This figure represents the maximum amount of rent that a property can charge under the Section 8 program. Given the absence of specific market and home value data, the FMR becomes the primary indicator for rental income potential in this area. It suggests that properties in ZIP 56287 can achieve a decent yield, particularly if they are located in areas where the demand for affordable housing is strong.
Regarding stability, the data points to a modest percentage of renters at 2.9%. While this figure alone might suggest low stability, it's important to consider it alongside other factors such as the median income of $73,750. The higher median income indicates that residents have a reasonable financial capacity, which could contribute to lower turnover rates and greater stability in rental payments. However, the lack of data on days on market (DOM) means we cannot fully assess the speed at which properties are rented out, which is another key factor in stability.
Based on the available information, ZIP 56287 appears to be a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The combination of a defined FMR and a relatively stable median income supports a scenario where landlords can expect reliable rental income without the volatility often associated with areas with rapid turnover or speculative flipping. Investors should focus on securing long-term tenants and managing properties efficiently to maximize cash flow and minimize vacancy periods.
To further refine investment decisions, additional research into local market trends, competition, and specific property conditions would be beneficial. Despite the limitations in the provided data, the current indicators point towards a moderate level of both yield and stability, suitable for those seeking a balanced approach to real estate investment.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.